Energy Prices On The Cusp Of Meltown Then Recovered.

On April 19, 2012 by TradingDesk

Energy prices were on the cusp of a major meltdown Wednesday, but once again, major support levels held and prices recovered. RBOB was the standout on the day, dropping nearly a dime in early trade, then bouncing 7 cents into the close after it filled its rvp rollover gap on the charts. The action is very similar to a week ago, so it’s too early to say that the selling is finished, although it does appear that after shaking out some of the weak hands, the fund money is ready to keep a bid in our market.

The DOE report had some positive signals for refined products, the most notable was that exports from the US broke the 1 million barrel/day mark. That level is especially impressive considering that the US was a net importer of refined products for more than 50 years, and has just recently shifted its position. The improving domestic fundamental data helped product spreads to rally after heavy selling early in the week.

Financial markets are showing some life this morning after Spain dodged a bullet in its most recent debt auction. While the prices they paid were the highest of the year, there were many who feared that buyers would stay away all together. Weekly jobless claims disappointed again, rising to 386,000, while the statistically impossible trend of prior-week revisions continued with last week’s value rising from 380,000 to 388,000.

CLICK HERE for a PDF of this morning’s charts.


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